'The Use of Information to Manage the Defence Logistics Supply Chain (HC 1202)' assesses the Ministry of Defence's performance in managing the supply chain to front line troops.

The Ministry of Defence (MoD) rightly puts a strong emphasis on ensuring troops get the supplies they need. Equally, providing an efficient supply chain would release resources for the front line.

The Committee believes there should be greater emphasis on securing value for money and that there is room for it to find efficiencies in the supply chain without jeopardising operational effectiveness. Previous reports have identified persistent problems with late deliveries, unnecessary costs and missed targets.

At present, the MoD does not have the information to identify where savings could be made and it does not know the full costs of its current activities or the cost of alternative supply options.

The failure to collect basic data about where supplies are stored has directly contributed to the MoD accounts being qualified for three consecutive years.

The MoD is now seeking to resolve these information problems through a major initiative known as the Future Logistics Information Services project, expected to be implemented by 2014.

Until then, the Department will continue to store data in systems that are at critical risk of failure. It is vital that the MOD sustains its programme in order to secure value for money.

Measures which could improve the efficiency of supply operations include:

putting more pressure on suppliers to deliver on time;

keeping stocks at lower levels to reduce the risk of them deteriorating; and

benchmarking performance against relevant comparators such as other armed forces.